Sidus Space (NASDAQ:SIDU) saw its share price slide 21% on Thursday after the space and defense technology company unveiled a registered direct offering intended to raise about $100 million in gross proceeds.
The offering was set at $5.08 per share and consists of 19,685,039 shares of Class A common stock or pre-funded warrants, with the pricing executed at-the-market under Nasdaq rules. Prior to the announcement, the stock had closed Wednesday at $6.09.
In a filing, Sidus Space said it plans to allocate the net proceeds from the offering to working capital and general corporate purposes. The company estimated total gross proceeds, before deducting the placement agent fee and other offering expenses, to be approximately $100 million.
The transaction is scheduled to close on May 29, 2026, subject to customary closing conditions. ThinkEquity is acting as the sole placement agent for the offering.
Market reaction was swift: the stated at-the-market offering and the sizeable share count coincided with a sharp intraday decline in the stock. The company did not attach additional details on specific uses of the funds beyond the broad categories of working capital and general corporate needs.
For investors and market participants tracking capital raises in the aerospace and defense technology sectors, the Sidus Space filing underscores a common path companies take to bolster liquidity via equity issuance. At-the-market pricing under Nasdaq rules allowed the company to set the offering at the market price, while the use of pre-funded warrants provided flexibility around dilution timing and investor eligibility.
The offering remains subject to customary conditions and has a target close date of May 29, 2026. Further updates will depend on the completion of those closing conditions and the placement agent's execution.
Summary
Sidus Space announced a registered direct offering of 19,685,039 Class A shares or pre-funded warrants, priced at $5.08 per unit, aiming to raise roughly $100 million in gross proceeds. The company said net proceeds will support working capital and general corporate purposes. ThinkEquity is the sole placement agent, and the transaction is expected to close on May 29, 2026, subject to customary closing conditions. The announcement coincided with a 21% drop in the stock from a Wednesday close of $6.09.